Deutsche Bank shares blow hits Barclays and RBS shares

SHARES in Barclays and Royal Bank of Scotland fell yesterday after plunging profits at Germany’s biggest bank sent shockwaves across the industry.

Published: 00:00, Tue, January 21, 2014

Deutsche Bank's market value has decreased by five per cent [GETTY]

Deutsche Bank had up to five per cent wiped from its market value after it posted a fourth-quarter pre-tax loss of £950million due to litigation and restructuring costs and a sharp drop in debt trading revenues.

Revenues at Deutsche’s investment banking arm fell by 27 per cent in the fourth quarter compared with the previous year in the run-up to the US Federal Reserve’s decision to scale back its bond-buying stimulus programme. Litigation costs reached £436million in the period to increase the year’s fines and settlements bill to just over £2billion.

Last month it agreed to pay £1.15billion to settle a lawsuit with the US Federal Housing Finance Agency and was fined £600million by the European Commission for rigging benchmark interest rates.

Deutsche’s joint chief executives Juergen Fitschen and Anshu Jain said they were confident of reaching their targets for 2015 but expect 2014 to be a “year of further challenges”.